Case Study: Insurance Oversight for a Manufacturing Executive
Client Profile:
Newly promoted EVP & Head of Operations at a mid-sized manufacturing firm.
Salary increased from $150K to $900K over the past 10 years.
Frequently drives his personal vehicle between facilities within a 100-mile radius.
Covered by corporate D&O insurance and corporate auto policy—but only when driving a company car or rental under a corporate contract.
Incident: A Hidden Exposure
•While commuting between plants, the executive rear-ends another driver in his personal vehicle. The driver sustains injuries and files a lawsuit.
•Because the executive wasn’t in a company-owned or corporate-rented vehicle, the corporate auto policy denies coverage.
•The D&O policy doesn’t apply, as the accident was not related to board-level decisions or fiduciary duties.
•His personal auto insurance, still based on outdated income and lifestyle assumptions, only carries $100K in liability coverage with no umbrella policy.
Outcome:
He is sued personally for over $1 million. Legal defense costs alone exceed his policy limits.
With inadequate coverage, his personal assets—including investments, savings, and potentially property—are at risk.
How Belvedere Would Have Helped:
Belvedere Risk Consultants would have proactively:
Collaborated with our Insurance Partners to review all corporate insurance policies to identify gaps in coverage, especially for frequent non-fleet travel.
Analyzed personal auto and liability coverage, aligning it with current income, assets, and executive risk exposure.
Recommended appropriate umbrella coverage—typically $3M–$5M for executives with high compensation and public visibility.
Assessed household risk factors, including teenage drivers and multiple vehicles, ensuring the entire family was properly protected.
Coordinated with legal, HR, and insurance providers to implement seamless, integrated risk protection.
Value Delivered
"We ensure your lifestyle evolves in lockstep with your risk coverage. Insurance should protect your future, not just your past.”
Belvedere’s holistic approach to insurance consulting would have prevented this costly oversight—preserving the executive’s wealth, reputation, and peace of mind.